Related provisions for MIPRU 4.2.1

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To access the FCA Handbook Archive choose a date between 1 January 2001 and 31 December 2004 (From field only).

(1) A firm may take into account factors other than those identified in the overall Pillar 2 rule when it assesses the level of capital it wishes to hold. These factors might include external rating goals, market reputation and its strategic goals. However, a firm should be able to distinguish, for the purpose of its dialogue with the FCA, between capital it holds to comply with the overall financial adequacy rule, capital it holds as a capital planning buffer and capital held
Where the assets of a firm invested in a significant territory for the purposes of PRA Rulebook: Non-Solvency II firms: Capital Resources Requirements, 20.10,8 represent less than 0.5% of the firm'slong-term insurance assets (excluding assets held to cover index-linked liabilities or property-linked liabilities), measured by market value, the firm may assume for those assets the market risk scenario for assets of that kind invested in the United Kingdom set out in8PRA Rulebook:
SUP App 2.15.9GRP

These tables belong to SUP App 2.15.8 G

Table 1 - forecast summary revenue account for the relevant with-profits fund


Premiums and claims (gross and net of reinsurance) analysed by major class of insurance business


Investment return




Other charges and income




Increase (decrease) in fund in financial year


Fund brought forward


Fund carried forward

Table 2 - forecast summary balance sheet and statement of solvency for the relevant with-profits fund

Assets analysed by type (excluding implicit items):




Land and buildings


Fixed interest investments


All other assets


Total assets (excluding implicit items)


Policyholder liabilities


Other liabilities


Total liabilities


Excess/(deficiency) of assets over liabilities before implicit items


Implicit items allocated to the with-profits fund


Long-term insurance capital requirement for the with-profits fund


Resilience capital requirement for the with-profits fund





Net excess/(deficiency) of assets in the with-profits fund

Table 3 - forecast summary balance sheet and statement of solvency for the firm


Surplus long-term insurance assets, with-profit fund(s)


Surplus long-term insurance assets, non-profit fund(s)


Total long-term insurance assets



Total long-term insurance liabilities (excluding resilience capital requirement)


Total long-term insurance fund surplus



Shareholder fund assets


Implicit items


Long-term insurance capital requirement


Excess of regulatory assets over long-term insurance capital requirement






Resilience capital requirement


Net excess assets



FTSE level at which the long-term insurance capital requirement would be breached

The rules and guidance in this sourcebook will assist the appropriate regulator to meet the statutory objectives. This sourcebook does so by setting minimal capital and other risk management standards thereby mitigating the possibility that firms will be unable to meet their liabilities and commitments to consumers and counterparties.
SUP 4.3.13RRP
An actuary appointed to perform the actuarial function must, in respect of those classes of the firm's long-term insurance business which are covered by his appointment1:1(1) advise the firm's management, at the level of seniority that is reasonably appropriate, on1 the risks the firm runs in1 so far as they may have a material impact on the firm's ability to meet liabilities to policyholders in respect of long-term insurance contracts as they fall due and on the capital needed
(1) [deleted]88(2) In this context, the FCA will interpret the term 'appropriate88' as meaning sufficient in terms of quantity, quality and availability, and 'resources' as including all financial resources (though only in the case of firms not carrying on, or seeking to carry on, a PRA-regulated activity)8, non-financial resources and means of managing its resources; for example, capital, provisions against liabilities, holdings of or access to cash and other liquid assets, human